This study examines how exchange-rate volatility affected Ireland's exports to its most important trading partner, the United Kingdom, from 1979 to 1992. To ensure reliable inferences regarding income and price elasticities and the impact of exchange rate volatility on exports, the time series...

Bilateral import unit values are constructed to investigate the extent and speed of exchange rate and production cost pass-through into the unit values of Irish imports (total and sectoral) from the UK using Menon's (1996) mark-up model. The approach used to measure exchange rate pass-through is...

This article evaluates the performance of alternative estimation methods for gravity models with heteroscedasticity and zero trade values. Both problematic issues, recently addressed by Santos Silva and Tenreyro in an influential paper, are re-examined here. We use Monte Carlo simulations to...